5-Year Variable Mortgage Rates in Canada
The best 5-year variable mortgage rate in Canada today is 3.70%, on the insurable shelf. That is prime minus 1.25%, with prime at 4.95%. Compare every 5-year variable rate we track below, by shelf and loan-to-value.
Which shelf are you actually shopping? Enter the numbers and we will filter the board to the rates you can really get.
Loan-to-value 90.0% · insured
Under 20% down, so default insurance is mandatory and the premium is added to the mortgage.
Lenders ask our rates only be disclosed to potential borrowers.
Login to browse all lender rates & offers for each term by program choice.
| Lender | Term | Category | Rate | APR | |
|---|---|---|---|---|---|
| Exclusive Lender Exclusive | 5 yr variablePrime − 1.25% | Insurable ≤80% | 3.70% | — | Get this rate |
| Sign in to reveal | 5 yr variablePrime − 1.15% | Insurable ≤80% | 3.80% | — | Get this rate |
| Sign in to reveal | 5 yr variablePrime − 1.15% | Insurable ≤80% | 3.80% | — | Get this rate |
No rates match that combination. Widen the filters — and remember the board is what we could verify this week, not every rate that exists.
Please Note: Some conditions may apply. Rates may vary from Province to Province. Rates are subject to change without notice. Posted rates may be high ratio and/or quick close, which differs from conventional rates. The mortgage rates are provided as guidance only, and the accuracy of these rates is not guaranteed. The rate provided by any financial institution listed, or any approval or decline you receive, will be based solely on your personal situation. You are strongly encouraged to speak with a licensed mortgage professional for the most accurate information and determine your eligibility.
Rates are the lowest we have collected for each combination and are not an offer or a commitment to lend by anyone. Every payment on this site uses semi-annual compounding, the Canadian standard.
What you are really buying with a variable
A variable rate is priced as a discount off prime. When the Bank of Canada moves, prime moves, and your rate moves with it — usually within a few days. What you get for that uncertainty is the cheapest exit in the market: three months' interest to break, no matter when.
Five years is where the deepest discounting sits, because it is where lenders make their money and where the market is most competitive.
Under 20% down
You put less than 20% down and default insurance is on the file. The lender carries no loss exposure, so these are the lowest rates on the board — but the premium is added to your mortgage.
20%+ down, up to $1.5M property value, 25-year amortization
You put 20% or more down and the file fits portfolio-insurance rules, so the lender can back-end bulk insure it at its own cost — on property values up to $1.5M. Priced between insured and uninsured, and tiered by loan-to-value.
Refinances, $1.5M+, 30-year amortization, rentals
The lender keeps the full risk: refinances, properties above $1.5M, amortizations past 25 years, and rentals. Rates sit highest here, typically 20 to 40 basis points above insured.
Track Best Renewal Offers up to 90 Days before Maturity
Get notified on best mortgage rates for transfer and refinance to compare your monthly savings.
5-year variable mortgage questions
Is a 5-year variable mortgage right for me?
A variable makes sense if you can absorb a payment increase without stress and you may break the term early — variable penalties are three months' interest, versus an interest rate differential on a fixed that can run to five figures. It is a worse idea if a rate rise would genuinely hurt.
How is a 5-year term different from a 5-year amortization?
The term is how long this contract lasts — 5 years. The amortization is how long it would take to pay the mortgage off entirely, usually 25 or 30 years. At the end of the term you renew whatever is left. Almost nobody pays off a mortgage in one term.
What happens to my payment when prime moves?
It depends on the lender. Some adjust your payment; others keep the payment fixed and change how much of it goes to interest, which means a rate rise silently extends your amortization. Ask which kind you have — it matters a great deal in a rising market.
What is the penalty if I break it?
Three months' interest, on almost every variable in the market. On a $400,000 balance at 4.5% that is roughly $4,500.
Sources and how to read this board
Rates are collected from lender rate sheets and checked by the RateShop rate desk; the board's own as-of date is printed on it. The rules the shelves follow are set by OSFI Guideline B-20 (the qualifying rate and stress test), the Department of Finance mortgage insurance rules ($1.5M price cap, 25-year amortization on insured files) and the three insurers — CMHC, Sagen and Canada Guaranty. Variable rates move with the Bank of Canada policy rate, through prime.
The math is free. Acting on it is the point.
When you are ready to do something with these numbers, we will introduce you to a licensed broker who can put the file in front of lenders. Nothing here obliges you to.
